📊 ON Key Takeaways
Is On Semiconductor Corp. (ON) a Good Investment?
ON Semiconductor faces severe operational deterioration with 15.3% YoY revenue contraction and operating margins collapsed to 1.4%, indicating acute cyclical headwinds in the semiconductor sector. While the balance sheet remains fortress-like with strong liquidity and modest leverage, the core business is functionally unprofitable with EPS declining 92% YoY and capital returns (ROE 1.6%, ROA 1.0%) near zero, signaling value destruction until operational recovery materializes.
Revenue contraction and sharp margin compression weigh on profitability, driving weak ROE/ROA despite stable net income, while fundamentals remain supported by strong liquidity and robust free cash flow generation. Moderate leverage and acceptable interest coverage provide resilience, but clearer evidence of demand stabilization and margin recovery is needed before turning more constructive.
Why Buy On Semiconductor Corp. Stock? ON Key Strengths
- Conservative balance sheet with 0.39x debt/equity ratio and $2.1B cash providing financial cushion
- Excellent liquidity position with 4.52x current ratio ensuring near-term solvency
- Robust free cash flow generation of $1.4B (23.7% FCF margin) despite profitability challenges, maintaining dividend capacity
- Strong liquidity with 4.5x current and 3.0x quick ratios plus $2.15B cash
- Robust free cash flow ($1.42B, 23.7% margin)
- Moderate leverage (0.39x D/E) with 5.4x interest coverage
ON Stock Risks: On Semiconductor Corp. Investment Risks
- Severe revenue contraction of 15.3% YoY reflecting significant market demand deterioration in semiconductor end-markets
- Extreme margin compression with operating margin of 1.4% and net margin of 2.0%, indicating pricing pressure and cost absorption failures
- Capital efficiency metrics (ROE 1.6%, ROA 1.0%) near zero with 92% YoY EPS decline, suggesting extended recovery timeline uncertain
- Revenue down 15.3% YoY indicating demand softness
- Operating margin compressed to 1.4% with weak ROE/ROA
- Cash flow strength may reflect working-capital releases that could reverse
Key Metrics to Watch
- Revenue stabilization and sequential growth inflection amid semiconductor cycle recovery
- Operating margin expansion toward historical 5-7% levels indicating unit economics improvement
- Return on equity trajectory toward double-digit levels as profitability and asset utilization normalize
- Gross margin
- Revenue YoY growth
On Semiconductor Corp. (ON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 4.52x current ratio provides a solid financial cushion.
ON Profit Margin, ROE & Profitability Analysis
ON vs Technology Sector: How On Semiconductor Corp. Compares
How On Semiconductor Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is On Semiconductor Corp. Stock Overvalued? ON Valuation Analysis 2026
Based on fundamental analysis, On Semiconductor Corp. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
On Semiconductor Corp. Balance Sheet: ON Debt, Cash & Liquidity
ON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: On Semiconductor Corp.'s revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.89 reflects profitable operations.
ON Revenue Growth, EPS Growth & YoY Performance
ON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6B | -$60.8M | $-0.15 |
| Q2 2025 | $1.5B | $170.3M | $0.41 |
| Q1 2025 | $1.4B | $453.0M | $1.04 |
| Q3 2024 | $1.8B | $401.7M | $0.93 |
| Q2 2024 | $1.7B | $338.2M | $0.78 |
| Q1 2024 | $1.9B | $453.0M | $1.03 |
| Q3 2023 | $2.2B | $311.9M | $0.70 |
| Q2 2023 | $2.1B | $455.8M | $1.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
On Semiconductor Corp. Dividends, Buybacks & Capital Allocation
ON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for On Semiconductor Corp. (CIK: 0001097864)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ON
What is the AI rating for ON?
On Semiconductor Corp. (ON) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ON's key strengths?
Claude: Conservative balance sheet with 0.39x debt/equity ratio and $2.1B cash providing financial cushion. Excellent liquidity position with 4.52x current ratio ensuring near-term solvency. ChatGPT: Strong liquidity with 4.5x current and 3.0x quick ratios plus $2.15B cash. Robust free cash flow ($1.42B, 23.7% margin).
What are the risks of investing in ON?
Claude: Severe revenue contraction of 15.3% YoY reflecting significant market demand deterioration in semiconductor end-markets. Extreme margin compression with operating margin of 1.4% and net margin of 2.0%, indicating pricing pressure and cost absorption failures. ChatGPT: Revenue down 15.3% YoY indicating demand softness. Operating margin compressed to 1.4% with weak ROE/ROA.
What is ON's revenue and growth?
On Semiconductor Corp. reported revenue of $6.0B.
Does ON pay dividends?
On Semiconductor Corp. does not currently pay dividends.
Where can I find ON SEC filings?
Official SEC filings for On Semiconductor Corp. (CIK: 0001097864) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ON's EPS?
On Semiconductor Corp. has a diluted EPS of $0.29.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ON a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, On Semiconductor Corp. has a SELL rating with 66% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ON stock overvalued or undervalued?
Valuation metrics for ON: ROE of 1.6% (sector avg: 22%), net margin of 2.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy ON stock in 2026?
Our dual AI analysis gives On Semiconductor Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ON's free cash flow?
On Semiconductor Corp.'s operating cash flow is $1.8B, with capital expenditures of $341.2M. FCF margin is 23.7%.
How does ON compare to other Technology stocks?
Vs Technology sector averages: Net margin 2.0% (avg: 18%), ROE 1.6% (avg: 22%), current ratio 4.52 (avg: 2.5).